Cigarette Wholesale Subcontractor
A cigarette wholesale subcontractor is defined as any person, firm, limited liability company, partnership, or corporation who purchases stamped cigarettes from a licensed Colorado distributor/wholesaler for resale to a Colorado cigarette retailer. A cigarette wholesale subcontractor license is required if a subcontractor purchases stamped cigarettes from a licensed Colorado wholesaler for resale to a retailer in Colorado.
Go to Forms & Instructions | Cigarette, Nicotine Products, & Tobacco Products Tax to download the forms listed on this page.
How to Apply for a Cigarette License
How to Renew a License
Along with the renewal form and payment, documents required for license renewal include:
- Any unfiled MSA documents - Non-Participating Manufacturer Brands Reporting Form, DR 1285, or Annual Exemption from Monthly Non-Anticipating Manufacturer Brands, DR 1286.
- Any unfiled tax returns
- Payment of outstanding debt(s) due to the department
- A valid sales tax license, if cigarettes are sold directly to consumers and/or are sold wholesale to retailers
- Provide documentation showing you will purchase cigarettes certified to sell in Colorado with Colorado stamps affixed from at least one Colorado Licensed Cigarette Distributor.
- Letter of intent to purchase Participating Manufacturer and/or Non-Participating Manufacturer (PM / NPM) cigarettes. This letter of intent must be on cigarette manufacturer letterhead and be less than one year old.
Filing Information for Cigarette Wholesale Subcontractor
Cigarette Inventory Tax
Cigarette wholesale subcontractors do not file a monthly cigarette excise tax return. However, an inventory floor tax on cigarette wholesalers (distributors) and wholesale subcontractors will be owed when the tax rate increases. The inventory tax is the difference between the old per pack tax and the new per pack tax. Cigarette packs stamped with the old tax stamp prior to July 1, 2024, are subject to the inventory tax and may be sold with the old stamp on or after July 1, 2024. It is unlawful to stamp cigarette packs with the old tax stamp after 11:59 p.m. June 30, 2024. Unused old stamps purchased within one year of the refund claim may be returned for credit, and new stamps reflecting the new tax rate will be available for purchase on July 1, 2024. For the rate increase effective July 1, 2024, all licensed cigarette distributors are required to file the Cigarette Inventory Tax Return, form DR 0224, by August 12, 2024 through Revenue Online or as a paper form available at tax.colorado.gov/forms-in-number-order.
Inventory Tax return payments are required to be paid electronically. This can be done using Revenue Online or by electronic funds transfer (EFT). An EFT payment transmitted after the due date is subject to late penalty, interest, and loss of vendor fee.
Master Settlement Agreement (MSA) Reporting
A Cigarette Wholesale Subcontractor is required to file information annually on the Annual Exemption from Monthly Non-Participating Manufacturer Brands Reporting, DR 1286. For more information on MSA reporting, see the Master Settlement Agreement Reporting web page.
For more information, see the Colorado Cigarette Tax Guide Publication.
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